ISSN: 1813-0534
 

 

 

 

 

 


C
Volume 7 No.1 April 2011 Edition

Strategic Management Capabilities That Drive West Australian Law Firm Success

Pirrie Moffat,Dr Alan Simon (Corresponding Author )
University of Western Australia,Australia

ABSTRACT

This paper reports a study which aimed to identify the strategic management capabilities that West Australian law firms believe are related to increased success. A second aim was to ascertain what lawyers consider to be relevant indicators of success, and thirdly, whether these are related to the capabilities. Content analysis, interviewing and questionnaires, were used to collect the data. Twenty-five strategic management capabilities were identified. Of these, the five most important, in descending order, were client trust, being attuned to client requirements, expertise/competence, integrity and quality of service. Thirteen success indicators were also identified. Of these, client satisfaction, client retention, results/outcomes for clients, referrals and profitability were found, also in descending order, to be the most critical measures. All twenty-five capabilities were statistically related to one or more success indicators. Therefore, to gain a competitive edge, a portfolio of these diverse capabilities should be implemented by law practices.
Keywords: strategic management capabilities; law firms; Australia.

 

 

The Strategic Management of Brand Equity: Exploring the Resources, Capabilities and Lessons of Marriott’s Entry into China

Dr Mark Wickham, Mr Tommy Wong University of Tasmania Australia
Wayne O'Donohue, PhD ,Griffith University Australia

ABSTRACT

Empirical research has consistently demonstrated a significant and positive relationship between brand equity and desirable organisational outcomes such as higher returns on investment, brand extension opportunities, and higher levels of consumer preference and purchase intentions (see Madden, Fehle & Fournier, 2006; Yeung & Ramasay, 2008). More recently, there have been calls for researchers to go beyond identifying the benefits of effective brand equity management to explore how brand equity is constructed as a strategic organisational process (Banerjee, 2007; Broyles, Schumann & Leingpibul, 2009). One such call has been to identify the specific organisational resources and capabilities required to manage brand equity strategically and internationally – especially in firms attempting to leverage Western brands into emerging Asian markets such as China (Ni & Wan, 2008). This paper presents an analysis of the entry by Marriott International into the Chinese market for high quality hotel accommodation and associated services, with a particular interest in the resources and capabilities that the company used to manage their brand equity effectively in that context. The analysis indicates three key aspects in the development of the antecedent resources and capabilities associated with brand equity management across national borders into China.


 

Managerial Alignment versus Entrenchment Effects on Firm Performance in Australia

Wanachan Singchawla, Suan Dusit Rajabhat Univeristy, Bangkok, Thailand
Robert T Evans and John P Evans( Corresponding Author) ,Curtin University, Perth, Australia

ABSTRACT

This study investigates whether managerial share ownership serve to enhance or detract from firm performance in listed companies in Australia. The results support both the ‘convergence of interest’ and ‘entrenchment’ hypotheses and therefore, the existence of a non-linear relationship between firm performance and managerial ownership. A cubic relationship is found to exist for Australian data, namely convergence to entrenchment to convergence, with maximum and minimum points occurring at approximately 12% and 58% of executive directors’ shareholdings, respectively.

 

 

 

Programming Models Applied in HR Decision-Making Processes

Kuang Jung Tseng,Department of International Business, Hsuan Chuang University,Taiwan

ABSTRACT

Recent literatures suggest that companies have not effectively recruit proper employees, perhaps because they are not utilizing the most effective predictors in making selection decisions. Therefore, the purpose of this study is to apply mathematical programming models into the decision-making processes when Human Resources (HR) professionals carry out their duties. The mathematical programming models are developed for classification and separation of two groups of data. A linear program and a quadratic are developed for solving the classification, separation problems. Some mathematical formulae for decision-making will be presented in this paper. What elements would a human resources manager consider when they select new employees? An ideal HRM model, which will be linked to the mathematical formulae, is presented. The approach continues with an analysis of the mathematical programming models are helpful for managers to solve some of humanresource problems in decision making.

Keywords:decision-making, Human Resources, Fuzzy set theory, linear programming, quadratic programming

 

 

 

CSL Sailing off the Red Ocean: A Case Study of Blue Ocean Strategy

Alex Ng Hou Hong, Swinburne University of Technology, Sarawak Campus,Malaysia
Dr. Dominic Lau Hoe Chai, UCSI University,Malaysia
Dr. Wan Khairuzzaman Bin Ismail, Universiti Teknologi Malaysia,Malaysia

 

ABSTRACT

This paper attempts to reveal how CSL breakaways from the throat cutting competition in Malaysian mobile phone distribution industry in the course of blue ocean strategy. The nature of Malaysian mobile phone industry is disorganized and its distribution channel is very sophisticated. The competition is getting intense, consequently the bargaining power for both dealers and consumers are increasing radically with the raising price pressure. In order to stay away from the competition or as the co-author of the ‘Blue Ocean Strategy’, Professor Kim puts it, break out the ‘red ocean of bloody competition’, CSL begins to look across the strategic groups within the industry and focus on the noncustomers. Today, CSL has grown with the industry and has successfully managed to position itself as one of the major players in the Malaysian mobile phone industry with 2000 retail points and 80 retail outlets and 18 service centers nationwide.

 

 


 Insufficiency of Traditional Methods in Testing Randomness

Fatollah Salimian, Jerome J. DeRidder, Professor
Franklin P. Perdue School of Business,Salisbury University,U.S.A.

ABSTRACT

Many researchers use random numbers as the basis or groundwork of their scientific
inquiry or investigation into a subject. The results of these studies or investigations are expected to be unbiased discoveries or revision of theories or facts. However, are random numbers used in these diligent scientific investigations really random? This paper will examine the notion that random numbers used in some research studies may not be truly random.
We have demonstrated that numbers generated by a mathematical procedure, may pass the traditional tests of randomness; but passing these tests per se, may not be sufficient to ascertain that the generated numbers are in fact random. To achieve this objective, a set of 1500 six digit numbers of the Fibonacci series were chosen. These numbers were tested for randomness using Frequency Test, Serial Test, Runs Test, Poker Test, and Significant Correlation Test.
Despite favorable results gained by utilizing these conventional methods, it was found that the generated numbers grossly lack randomness.

 

 

New Evidence on the Efficiency of South Asian Emerging Stock Markets

Guneratne B Wickremasinghe
School of Accounting and Centre for Strategic Economic Studies
Victoria University,Melbourne,Australia

ABSTRACT

This paper investigates the empirical validity of the weak form of the Efficient Market Hypothesis (EMH) for four emerging stock markets in South Asia. As opposed to econometric techniques widely used in previous studies to examine this issue, we employ panel unit root tests and univariate unit root tests that have better power and size properties than widely used ADF-type unit root tests. Our results indicate that panel unit root tests strongly support the validity of the EMH for the South Asian emerging stock markets although the univariate unit root tests provide mixed results. These results are attributed to the low power of univariate unit root tests to recognise the true data generating processes of economic variables. The implications of the results are that stock market participants cannot devise any trading rule to beat the stock markets in the South Asian region on a consistent basis.

Keywords: Random Walk Hypothesis, Emerging Stock Markets, South Asia, Panel unit root Tests






Assessment of Aggregate Interaction Effect and Aggregate Persistence Effect in Market Share Analysis

Dr. Nagasimha Balakrishna Kanagal,Indian Institute of Management Bangalore,India

 

ABSTRACT

The paper proposes an alternative conceptualization to decision variable interaction in
market share analysis, by isolating the interaction free market share. The multicollinearity problem would thus be reduced. Further a method to correct for autocorrelation is proposed. Persistence which is the long term impact of current marketing action is identified. The theoretical conceptualization is run over a frequently moving consumer brand – Britannia Tiger glucose biscuits and the managerial implications are discussed.
KeyWords:Interaction effect, persistence effect, market share analysis, autocorrelation, interpretative decision making

 

 

 

The Cost of Equity Effects of Accruals Quality and Ownership Structure

Radziah Abdul Latiff ,Universiti Kebangsaan Malaysia,Malaysia
FauziahMd Taib ,Universiti Sains Malaysia,Malaysia

 

ABSTRACT

This study examines the cost of equity effects of two sources of information risk; the quality/precision of information and the information asymmetry between the ultimate controlling party and other shareholders, for a sample of Malaysian listed companies.
Consistent with previous research, all the earnings quality measures (accrual quality, discretionary current and total accruals) as proxy to information quality are significantly associated with the cost of equity. Asymmetric information between the controlling party and other shareholders is measured by the cash flow/voting rights ratio of the controlling party. Whilst there is no evidence of relationship between cash flow/voting rights and cost of equity, there is a significant and consistent evidence of market confidence vested in the presence substantial shareholders. This suggests substantial shareholder has a distinct cost of equity effect for the role in reducing information asymmetry and in leaking proprietary information to the public.

Keywords:accruals quality,

 


 

A Study on The Relationship between Independent Director System and Firm Value

Po-Wei Pan,Assistant Professor,Department of International Business
Hsuan Chuang University,Taiwan

 

ABSTRACT

Board of directors is one of the core elements for the corporate governance framework. From the viewpoint of corporate governance, this study aims to examine the relationship between independent director system and firm value in Taiwan’s listed companies, and to look into whether the controlling types, including family ownership, outside institutional investors and bank equity stakes will influence this aforesaid relationship so as to understand whether the independent director system plays a key role in firm value or not. Primary empirical results of five hypotheses in this study are as follows:
1.It has showed a positive correlation between the ratio of independent directors and supervisors number and firm value.
2.In the electronic information industry, it has showed a positive correlation between the board size and firm value. However, it has showed an insignificant correlation between the board size and firm value in the non-electronic information industry.
3.In the electronic information industry, it has showed an insignificant correlation between the family ownership and firm value. However, it has showed a positive correlation between the family ownership and firm value in the non-electronic information industry.
4.It has showed a positive correlation between the outside institutional investors (can be divided into the ratio held by foreign or domestic institutional investors) and firm value.
5.It has showed an insignificant correlation between the ownership ratio held by banks andfirm value.

In conclusion, these abovementioned results have showed the relationship between the good or bad corporate governance and the ratio of independent director and supervisor number and the board size and the ownership ratio; in addition, they can provide to governments and industries as a reference.

Keywords: Corporate governance, independent directors / supervisors, firm value, ownership structure of board

 


Stakeholders’ Perception of the Impacts of Corporate
Compliance with Nigerian Accounting Standards on Shareholders’ Wealth

Abubakar Sadiq Kasum, B. Sc., M. Sc., Ph.D., ACA.
Department of Accounting and Finance,University of Ilorin,Nigeria

ABSTRACT

Shareholders are crucial in business organizations. In addition, the primary purpose of a business is the maximization of shareholders’ wealth. In this regard, the accounting standards issued in Nigeria, like in other parts of the world, prescribe rules and principles that are supposed to promote good business practices that should in turn enhance owners’ wealth. The objective of this study, therefore, was to examine the impact that compliance has on the wealth of shareholders. Six hundred and eighty respondents were sampled through a multistage sampling technique from the population of the numerous stakeholders. The primary data consisted of perceptions and opinions of stakeholders on standardization. The data were captured on a Likert scale of one to five using a structured questionnaire. Z-statistics were used to investigate the mean responses of the perceptions of respondents of the impact of standardization on shareholders’ wealth. The study showed that stakeholders agreed that standardization is good for business, but that compliance with standards does not improve shareholders wealth. The conclusions of the study, therefore, are that corporate compliance to accounting standards still leaves room for improvement and that compliance has not improved shareholders’ wealth. The study recommended among others, that standards should be reviewed on continuous basis with the aim of ensuring that better business practices are enforced.

Keywords:Compliance with Standards; Shareholders’ Wealth; Stakeholders’ Perceptions





Accounting Research Publication Productivity: A Study of the Asia Pacific Region

Dr. Teck-Heang Lee,Monash University Sunway Campus,Malaysia.
Dr. Cai-Lian Tam,Monash University Sunway Campus,Malaysia.
Dr. Ching-Seng Yap,Universiti Tun Abdul Razak,Kuala Lumpur, Malaysia
Dr. Yet-Mee Lim,Universiti Tunku Abdul Rahman,Malaysia.

ABSTRACT

Adopting the research approach of Chan, Chen, and Cheng (2005), the study investigates the accounting publication productivity of universities in the Asia Pacific region from 2003 to 2009. The study also compares the publication productivity progress of the top 20 Asian- Pacific universities with the study conducted by Chan et al. (2005). Using a set of 18 accounting journals, this study ranks the top five universities as University of Sydney, The Hong Kong Polytechnic University, University of New South Wales, Nanyang Technological University, and Monash University. When a sub-set of top-5 accounting journals are used, the top five universities appear to be Hong Kong University of Science and Technology, Nanyang Technological University, University of New South Wales, Monash University, and The Hong Kong Polytechnic University. When compared with the study of Chan et al. (2005), while Australian and Hong Kong universities remain having the largest share of the research publication, New Zealand and Singaporean universities have increased their presence in the top 20 ranking.

Keywords:Publication Productivity, Accounting, Accounting Research, Asia Pacific Region,University Ranking, Article Count Method.




Accounting for Infrastructure Assets in a Climate Change Environment

Nick Sciulli, Victoria University, Melbourne, Victoria, Australia.

ABSTRACT

The objective of this investigation is to gain an understanding of what role (if any) the
accounting information system will have in reporting and managing infrastructure assets in the context of climate change. A survey was distributed to all coastal councils (55 in total) in Australia that are members of the National Sea Change Taskforce. A combination of basic descriptive statistics as well as an interpretative approach for the analysis of the additional comments provided is undertaken. Both closed and open questions were used to ascertain the views of managers regarding to what extent the accounting system would be utilised in managing the risk to infrastructure assets. The findings suggest that most coastal councils have recognised the need to undertake an audit of infrastructure at risk to climate change, but that they do not necessarily have the internal capacity to undertake this task. In addition, there is only modest support for the notion that the accounting system is adequate for identifying or managing infrastructure assets at risk to climate change.
The survey instrument was provided only to local councils residing in coastal areas in Australia. However, local councils in metropolitan areas will most likely face the same or similar issues raised by the respondents in this survey. There are several implications emanating from this study including the need for councils to undertake an audit of infrastructure to determine which assets are at risk to climate change. Moreover, debate needs to be commenced on the role accounting can have in the management and reporting of infrastructure at risk to climate change. This study is significant as it is the first study undertaken in Australia investigating the issues surrounding the role of the accounting system in identifying infrastructure assets at risk to the effects of climate change. Identifying infrastructure assets is the first step in developing appropriate adaptation responses to climate change. Local councils in coastal regions were selected as they are recognised as the most vulnerable to the effects of climate change.

 




 A Critical Examin ation of LIFO and a Review of its Shortcomings

Peter Harris, Katherine Kinkela, Paul Kutasovic, John Malindretos, Steven Shapiro,J.K. Yun
New York Institute of Technology,USA.

 

ABSTRACT

The Last in First out Inventory Method, (LIFO) is under intense scrutiny from many various groups, which may result in its complete elimination in the near future. There are pressures from the SEC to standardize financial reporting standards in light of the ongoing worldwide financial and economic unrest, in conjunction with the International Accounting Standards Board (IASB), coupled with the political pressures imposed by the U.S. Obama Administration to raise additional tax revenues; both of whom strongly oppose LIFO, resulting in its possible elimination by as early as December 31, 2014. A critical review of LIFO is examined, and its shortcomings addressed, which include: The “tax loophole” aspects of LIFO, leading to poor asset management decision making, Balance Sheet and Income Statement limitations and the imposition of political pressures. The disadvantages of LIFO are many and material, questioning its method as viable, resulting in a strong and real probability of its elimination in the near future.

 


 Airports Are Turning to Arts to Enhance Experience of Traveland Gain Economic Benefits

Keramat Poorsoltan,Frostburg State University, U.S.A.

 

ABSTRACT

Why do the airports bother with art when they do not have to? This research was
conducted to find answer to this question. The research explored the art-at-the airport
programs in airports of various sizes, why these programs exist, what their sources of funding are, what has been appeal of these programs, and how their programs operate. For this research, a questionnaire containing 25 questions was mailed to 410 airports in the United States and territories. Three hundred eighty two of these airports were primary airports. Primary airports in the United States as classified by the Federal Aviation Administration are those airports that provide scheduled passenger services and have over 10,000 passenger boardings per year. Through a previous research it was known that there are 28 non-primary airports that have art-at-the-airport program. They were added to the list of primary airports and the result was a total of 410. For a variety of reasons, some economic and some community-driven, an increasing number of airports of various sizes mostly since 1990s have made themselves involved with creating art galleries and or museums. These exhibitions are visible and accessible to either travelers or occasional visitors to airports while waiting either before (landside) or after (airside) the security gates. Art-at-airports has substantial variations in format, show duration, and contents. Some airports have permanent site-specific artworks, some have structurally integrated artworks, some have music performance as a routine show, some have artworks on a rotating basis, and at last, some airports sponsor contests for local school students either on annual or occasional basis.
The expansion of these programs from a handful in early 1970s to about 110 at the present time is a clear indication of the success of the art-at-the-airport programs at all airports that have embarked on this innovative way of bringing art to a very large number of potential viewers. Air travelers with sufficient time may enhance their trip –business or pleasure- even before starting their journey. These programs may be viewed as yet another tool to liberate even a total stranger from travel anxiety

 

 


The study of Travel Agency's Relationship Network – Alumni Network

Tsung-Yen Wang, Ching-Ching Luo, Yang-Fei Tai(corresponding author)
Chia Nan University of Pharmacy and Science,Taiwan

 

ABSTRACT

We utilized in this study both social exchange theory and the relationship network to explore the application of the travel agency’s relationship network. Pfeffer and Salancik(1978) pointed out that when an organization faced with uncertain external environment and the dependency and scarcity of the resource exchange , it would tend to link with an external important productive organization in order to maintain its survival and its competitive advantages. The travel agencies in the Taiwan travel industry are small and medium sized enterprises (SMEs), so there are specific cooperative and competitive modes in actual trading among travel agencies, including PAK( package tour), the share of flight seats, customer referrals (the interaction between wholesale and retail agent), sharing of industrial resources (allocation of airline seats in peak season) ,and Charter Flights. In this research, we began by
reviewing relevant theoretical literature, followed by establishing a conceptual framework.Then we conducted in-depth interviews with travel agencies in order to explore how the travel agency's development is and how the use of the alumni network is. Based on our research findings, the travel agency's alumni network is focused on the individual's interpersonal interaction. The social network is the medium for network continuity and for closing deals.However, the economic concept is more important than social rationality. On top of that, we point out in this study both the management implications and recommendations for futureresearch.

Keywords:social exchange theory, travel agency, alumni network, relationship network

 

 


The Architecture Design and Evaluation Model for Enterprise Information Portal Application System of Telecommunications Service Company

Hsu C.L.,Department of Business Administration, Ling Tung University,Taiwan
Dr. Chou T.Y.( Corresponding author), Department of Distribution Management,National Chin-Yi University of Technology,Taiwan

ABSTRACT

The development of enterprise information portal application system (EIPAS) is not only to share or integrate organization knowledge but also to support business strategy and enhance organization performance. The main purpose of this paper is to present an EIPAS framework for telecommunication service companies. In addition, a systematic fuzzy multiple criteria decision-making (FMCDM) based on AHP is developed to evaluate the implementation performance of the EIPAS. The framework can be utilized to broaden the networked infrastructure as a platform to progressively link up technologies with business process to support telecommunication service companies in creating value and earning customers. As to the FMCDM model, it provides managers to deal with complex issues under fuzzy environment, which is more appropriate and effective than traditional evaluation model.

Keywords:Enterprise information portal, Fuzzy multiple criteria

 

 

 
 
 



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